Money Talks and It Says, "Save Me!"

Something I'm seeing pop up lately is that Gen Y doesn't tend to worry about saving for retirement. Savings are passé, following your bliss into the variegated sunset and working well into your 70’s is en vogue. I can’t argue against that entirely. There is research suggesting that Baby Boomers aren’t retiring like previous generations. Many begin second careers late in life and have a “work till I die” attitude. Some realize their dreams later and want a second shot at whatever star they thought had faded. Gen Y, seeing this example, has decided they won’t let that happen, they want to find ways to be happy now, so that they don’t sit around and dream for when days will be better.

That’s all fine and good, but I wonder, why would it follow that it’s smart to eschew a savings plan? It doesn't, that's why. Does squirreling away 10-12% of your income cramp your lifestyle all that much? Do you have a full comprehension of what Albert Einstein is rumored to have called “the miracle of compounding interest”? Yes, even though this angry guy may rail against the statement’s validity and properly pegs compounding interest as a "social construct"...the fact of the matter is, like other "social constructs" such as reading, writing, and ‘rithmetic, it’s useful, it's here to stay, and it’s here to help you grow your money – and that’s a good thing.

Seriously. I've said it before and I'll say it again: Save your damn money. It’s not hard to do. Small amounts add up over time and can be used for something other than retirement. Heck, let’s not even call it “retirement savings,” instead, opt for a more fun, kitschy name like The FU Fund, via BUST magazine. This was an idea I caught off one of my favorite angry-ranting-about-personal-finance blogs: Escape Brooklyn. For anyone who is simply fed up with their job, goldfish, mailman…whatever. An FU Fund is the ultimate rainy day stash. It will give you the hutspa to day “I’m not gonna take it anymore” AC/DC style and ride off into that sunset.

And if you are so gloriously happy you can’t imagine what you’d do with your stockpile of money – then consider saving it for a cause you care about. The benefit of doling it out 50 years from now is that you maintain control over it for your lifetime, can use it if you need it, and can then direct its use more wisely in the future.